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Dáil Éireann debate -
Wednesday, 27 Nov 1991

Vol. 413 No. 6

Ceisteanna — Questions. Oral Answers. - Rate Support Grants.

Brendan Howlin

Question:

6 Mr. Howlin asked the Minister for the Environment when the rate support grants and the road grants will be notified to local authorities.

Jim Mitchell

Question:

7 Mr. J. Mitchell asked the Minister for the Environment if in view of the delay by his Department in indicating the amount of the 1992 rate support grant to local authorities, he will extend the statutory deadline this year so as to allow councillors sufficient time to adequately consider the implications of the rate support grant; and if he will make a statement on the matter.

Pádraic McCormack

Question:

19 Mr. McCormack asked the Minister for the Environment when the rate support grant will be notified to Galway County Council and Galway Corporation.

Eamon Gilmore

Question:

40 Mr. Gilmore asked the Minister for the Environment if the local authorities have yet been notified of their rates support grant for next year; the reason for the delay in notifying the local authorities in this regard; the amount of rate support grants for each local authority and the way this compares with the previous year; and if he will make a statement on the matter.

Jimmy Deenihan

Question:

49 Mr. Deenihan asked the Minister for the Environment when he will announce the rate support grant for each local authority for 1992; and if he will outline the level of grant for each county.

John Connor

Question:

51 Mr. Connor asked the Minister for the Environment when he will approve the level of the rate support grant for local authorities for the 1992 financial year; and if he intends to grant a time extension to councils who find that the statutory period for consideration of estimates will have expired before the announcement of the rate support grant.

Brendan Howlin

Question:

93 Mr. Howlin asked the Minister for the Environment when the 1992 rate support grant and road grants will be notified to local authorities.

Jimmy Deenihan

Question:

94 Mr. Deenihan asked the Minister for the Environment if he will outline the rate support grant for each local authority for (a) 1991 and (b) 1992.

Alan Shatter

Question:

99 Mr. Shatter asked the Minister for the Environment the rate support grant to be made available in Dublin County Council for 1992; and if he will outline the amount allocated in each of the last ten years.

Jimmy Deenihan

Question:

100 Mr. Deenihan asked the Minister for the Environment the level of rate support grant for each local authority in (1) 1978 and (2) 1991.

I propose to take Questions Nos. 6, 7, 19, 40, 49, 51, 93, 94, 99 and 100 together.

Local authorities were notified by my Department on Friday last, 22 November 1991, of their rate support grant allocations for 1992. The allocations for 1992 are the same as the amounts allocated for 1991 and I propose to circulate a tabular statement of the amount for each local authority in the Official Report.

In relation to allocations for earlier years, I refer to Question No. 166 of 15 November 1988 for details of rate support grants for each year from 1980 to 1987; to Question No. 167 of 30 October 1991 for the 1988 and 1989 grants; to Question No. 57 of 20 June 1991 for the 1990 grants and to Question No. 198 of 27 November 1990 for the 1991 grants. The 1978 allocations are set out in a second tabular statement to be circulated in the Official Report. I should point out, of course, that simple comparisons between the allocations for different years would be quite misleading, since it is necessary to take into account also the various other adjustments in local financial arrangements made since 1978, including the elimination of levies and demands, the writing-off of local loans fund repayments, and the provision for direct rate payments by the ESB.

Local authorities are obliged to hold a statutory estimates meeting within periods which are prescribed in the Public Bodies Orders. County councils must hold their statutory meetings between 1 October and 16 November. In the case of county boroughs and urban district councils, the period is 1 October to 30 November. However, section 10 of the City and County Management (Amendment) Act, 1955 allows local authorities, once they hold the estimates meeting, to adjourn the meeting as often as they wish provided that the estimates of expenses are adopted within 21 days of the date on which the statutory estimates meeting commenced. While the prescribed periods for the commencement of statutory estimates meetings may be varied by regulations, the 21 day period for adjourned meetings is fixed by statute.

It is normal practice for most local authorities to consider the annual estimates over a number of meetings and this has been the situation in respect of 1992 estimates. While I acknowledge that it is desirable to have an early indication of the level of the rate support grant for estimates purposes, I believe that the date of notification of the grant allocations for 1992 has not unduly interfered with consideration of estimates. I recognise that the adoption of the annual estimates of expenses by local authorities before the commencement of the financial year has proved to be conducive to improved financial management over the past four years and I intend to adhere to this strategy and to facilitate it as far as possible.

Pending the completion of the Government's consideration of the estimates for the public services in 1992, I am not in a position to determine the road grant allocations to local authorities for 1992. However, I will notify the authorities of these allocations as early as possible.

Rate Support Grant Allocations 1992

£

County Councils

Carlow

1,871,424

Cavan

3,876,444

Clare

132,710

Cork

10,041,380

Donegal

5,428,362

Dublin

20,042,427

Galway

7,143,371

Kerry

3,466,022

Kildare

4,277,837

Kilkenny

3,513,627

Laois

2,989,756

Leitrim

2,396,544

Limerick

5,637,010

Longford

2,065,306

Louth

2,490,381

Mayo

6,277,492

Meath

4,801,515

Monaghan

3,348,018

Offaly

2,268,518

Roscommon

4,531,944

Sligo

2,592,867

Tipperary NR

3,255,101

Tipperary SR

4,309,282

Waterford

3,822,668

Westmeath

3,206,380

Wexford

4,531,679

Wicklow

3,502,310

County Boroughs

Cork

4,561,920

Dublin

23,060,368

Galway

1,985,201

Limerick

2,412,753

Waterford

1,216,166

Urban District Councils

Arklow

231,206

Athlone

292,378

Athy

62,208

Ballina

209,434

Ballinasloe

129,600

Birr

125,453

Bray

882,317

Buncrana

46,450

Bundoran

80,870

Carlow

58,061

Carrickmacross

49,503

Carrick-on-Suir

103,680

Cashel

71,539

Castlebar

151,373

Castleblayney

38,362

Cavan

109,901

Ceanannus Mór

27,820

Clonakilty

60,134

Clones

80,870

Clonmel

434,419

Cobh

256,090

Drogheda

664,495

Dundalk

1,008,465

Dungarvan

185,587

Dún Laoghaire

3,815,424

Ennis

183,604

Enniscorthy

82,055

Fermoy

71,539

Kilkenny

320,371

Killarney

149,299

Kilrush

33,115

Kinsale

42,417

Letterkenny

145,175

Listowel

116,122

Longford

161,399

Macroom

60,134

Mallow

115,085

Midleton

71,539

Monaghan

185,533

Naas

34,580

Navan

66,355

Nenagh

110,938

New Ross

127,630

Skibbereen

73,321

Sligo

409,536

Templemore

79,834

Thurles

101,606

Tipperary

83,981

Tralee

420,941

Trim

51,840

Tullamore

109,901

Westport

96,422

Wexford

312,077

Wicklow

118,195

Youghal

144,115

Rate Support Grant Payments 1978

£

County Councils

Carlow

784,125

Cavan

2,426,845

Clare

2,786,024

Cork

7,980,598

Donegal

3,884,170

Dublin

16,347,778

Galway

4,827,774

Kerry

3,590,891

Kildare

1,684,075

Kilkenny

1,585,530

Laois

1,493,231

Leitrim

1,471,450

Limerick

2,895,790

Longford

1,190,327

Louth

996,132

Mayo

4,823,514

Meath

1,969,390

Monaghan

1,651,388

Offaly

1,387,449

Roscommon

2,841,172

Sligo

1,594,641

Tipperary NR

1,708,181

Tipperary SR

1,751,789

Waterford

1,655,595

Westmeath

1,489,271

Wexford

2,319,169

Wicklow

1,815,604

County Boroughs

Cork

4,230,943

Dublin

19,498,799

Galway

1,365,496

Limerick

1,980,389

Waterford

982,135

Urban District Councils

Arklow

159,233

Athlone

198,222

Athy

50,684

Ballina

201,877

Ballinasloe

105,102

Birr

87,868

Bray

546,623

Buncrana

63,328

Bundoran

56,233

Carlow

208,717

Carrickmacross

53,840

Carrick-on-Suir

83,778

Cashel

48,695

Castlebar

154,887

Castleblayney

41,561

Cavan

82,603

Ceanannus Mór

29,785

Clonakilty

45,212

Clones

64,563

Clonmel

270,058

Cobh

157,961

Drogheda

564,900

Dundalk

768,883

Dungarvan

140,453

Dún Laoghaire

2,471,308

Ennis

131,212

Enniscorthy

99,442

Fermoy

68,015

Kilkenny

247,443

Killarney

173,249

Kilrush

40,784

Kinsale

41,828

Letterkenny

141,663

Listowel

81,901

Longford

89,056

Macroom

50,320

Mallow

147,292

Midleton

61,914

Monaghan

194,755

Naas

115,238

Navan

64,782

Nenagh

110,185

New Ross

110,795

Skibbereen

53,821

Sligo

377,550

Templemore

44,011

Thurles

133,174

Tipperary

92,971

Tralee

341,056

Trim

37,300

Tullamore

169,116

Westport

96,004

Wexford

262,414

Wicklow

100,391

Youghal

143,123

I join my colleague in welcoming the new Minister for the Environment. We know each other well having served in other areas of responsibility. I welcome the belated notification of the rate support grant received some 48 hours ago and, of course, I claim no responsibility for nudging the Minister on in that regard. Will the Minister accept that the allocation made this year means a freezing of last year's rate and has meant in reality that since the Minister's party came into Government local authorities have suffered a 50 per cent cut in the rate support grant? Will he accept that that has had a devastating effect on employment and services provided by local authorities and has crushed the autonomy of local councillors? Will the Minister accept that it is virtually impossible for any local authority to strike a rate this year without further cutbacks in services and employment?

No, I do not accept that there has been a 50 per cent cut in the grants. For example, last year and the previous year there were increases of 3 per cent and 3.5 per cent which was in line with inflation, and that was given to each local authority. The local authorities have responded very well to the national financial situation which the Deputy is aware of and which the Government have had to grapple with over the last four years. So far this year 12 county councils, one borough council and 24 urban councils have adopted their rate for 1992.

The rate support grant has been notified very late to local authorities. While I acknowledge that some local authorities have proceeded to strike their rate, will the Minister acknowledge that a small number will have difficulty in meeting the deadline because of that late notification? Will the Minister be sympathetic to local authorities who request that that deadline be extended by a few days?

It is not usual to extend the time. There is a statutory period of 21 days within which councils are obliged to adopt their estimates. The estimates of expenditure should be adopted within 21 days of the date on which the statutory estimates meeting commenced. I have had one request so far to extend the time, and that is under consideration.

Will the Minister give an assurance that if any council have difficulty in striking a rate on time and extend their consideration of the estimates for a few days beyond the statutory limit, he will not dissolve that council but will give them some time because of the lateness of the notification of the rate support grant?

The Minister prescribes periods during which the statutory estimates meetings must be held and it is up to each local authority to select the date for their meeting within the prescribed time. The times set down are as follows: for county councils between 1 October and 16 November; for county boroughs and urban district councils between 1 October and 30 November and for other bodies between 1 and 30 October. Once an authority hold their meeting they are locked into a statutory time limit which I cannot extend. The Act lays down that an authority can at their discretion adjourn the meeting as often as they wish but they must adopt the estimates within 21 days of the commencement meeting.

Nearly all local authorities consider their estimates over a number of meetings before adopting them. I can tell the Deputy that three county councils and eight urban district councils adopted their estimates before the rate support grant allocations were notified and that most of them anticipated no increase in the rate support grant for 1992. I accept that in the past some local authorities failed to adopt their estimates within the prescribed period but did so subsequently when formal departures from the estimates periods were granted following requests by individual authorities. If any local authority fail to adopt their estimate within the prescribed period I will consider the situation on its merits having regard to the report of the city or county manager.

The Minister has denied that there has been a 50 per cent cut in real terms but will he accept that the allocation for Cork County Council has been cut from £23 million in 1986 to £10 million this year, that the allocation for Wexford County Council has been cut from £6.8 million in 1986 to £4.5 million this year and that the allocation for Wicklow County Council has been cut from £5.3 million in 1986 to £3.5 million this year?

In real terms, taking inflation into account, those are the figures I am talking about. Will he accept that it is highly unlikely that Cork City Council will be able to strike a rate because they are unwilling to make massive cuts? What is the Minister going to do about this?

As I pointed out, one cannot take the figures over the years and point to a reduction——

Is the Minister suggesting that they are not worse off?

There are two points I wish to make. First, there are variations for a number of reasons. I have already referred to some of these, such as repayments to the local loans fund; for example, the ESB. If we take Clare as an example——

That is just one of them.

That is a terrible example.

——it is not insignificant. I would also point out to Deputies that the rate support grant represents only a small percentage of the funding.

A very small percentage.

In the case of Cork Corporation to which the Deputy made reference it represents about 9.3 per cent.

Ten per cent of one's income is very significant.

That is the figure for the rate support grant; they have other sources of funding. I do not accept that the level of spending has been reduced by 50 per cent during the past five years.

May I ask a question?

I am sorry, Deputy, but if Question No. 8 is to be disposed of it must be replied to immediately.

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